Daily News

UK Energy Intensive Industries have agreed to extending energy efficiency improvement targets to 2020 as part of the voluntary Climate Change Agreements scheme which provides an extension to the Climate Change Levy. These efficiency improvements are estimated to deliver an overall 11 percent energy efficiency improvement across all industry sectors.

Growth in Mexico's distributed power generation market is being driven by insufficient centralized electricity provision. The failure of the traditional model for the electricity market, which includes large infrastructure for power generation, transmission, and distribution, is laying the groundwork for a distributed power generation (DPG) model, Frost & Sullivan latest country analysis finds.

Wood Group GTS has been awarded a $1.6 million contract by CNOOC and Shell Petrochemicals Company Ltd (CSPC), a joint venture between CNOOC Petrochemicals Investment Ltd and Shell Nanhai B.V., to supply new hot gas path components for a GE Frame 6B gas turbine in China.

To satisfy rising power demand and avert severe energy shortfalls, the Iraqi government plans to expand generating capacity from about 9GW to 27GW by supporting construction of new gas-fired power stations and the conversion of old gas-fired plants into combined-cycle plants. Iraq could triple its generating capacity by 2015, Dr. Abd 'Abd al-Satter, Director General at the Ministry of Electricity said according to a country specific analysis released by the US Energy Information Administration (EIA).

Ofgem is to fine SSE £10.5 million for misselling electricity to consumers in breach of Standard Licence Conditions. The fine – the largest ever to be imposed on a UK energy supplier – relates to numerous breaches of SSE's obligations relating to telephone, in-store and doorstep sales activities. Ofgem says that SSE consistently failed to provide clear and accurate information on prices and potential savings to customers about whether or not to switch suppliers.

Japan has decided to revamp its electricity industry by obliging utilities to split their power generation and distribution segments into separate businesses. The move – approved on Tuesday by the Prime Minister's cabinet – is intended to help foster competitiveness, and encourage innovation and modernisation in the country's electricity sector. A bill based on the cabinet's decision is to be submitted to parliament "around 2015."

As Qatar's electricity consumption has risen by a compound annual growth rate of 9.3 percent between 2001 and 2011, installed power generation capacity more than doubled from about 5300MW in 2009 to more than 10 500MW in 2011. The Gulf state produces power exclusively from natural gas and does not have any alternative projects underway.

Business expansion in Brazil is high on the agenda of E.ON, Germany's largest' power supplier, so the latest accord to increase its share in Brazil's electricity producer MPX to just over 36 percent is seen as a strategic move to counterbalance the company's ailing power generation business in Europe.

Both horizontal and vertical heat recovery steam generators (HRSG) have their own specific advantages, which makes it important for power plant operators to choose the best HRSG for their facility based on the circumstances appropriate for each type, Pascal Fontaine, CMI Energy Marketing Manager told Gas to Power Journal in an interview. In general, horizontal HRSGs are best suited for cogeneration while vertical HRSGs are best suited for combined-cycle duty although both can be used in either.

The fast growth of distributed energy resources – ranging from fuel cells to micro turbines, photovoltaic systems and reciprocating engine – fundamentally alters ways of power generation, transmission and storage.

SPX Corporation's Thermal Equipment and Services sector has won a contract worth $35 million to supply an air-cooled condenser (ACC) for Dalia Power Energies' new 835MW gas-fired combined cycle power plant (CCPP) which will be built in the Tel Tzafit region in Israel. The contract was awarded by Alstom - the engineering, procurement and construction (EPC) contractor for the plant.

MAN Diesel & Turbo has won an order worth €270 million to supply 14 18V48/60 diesel engines for the 194MW Zouk and 78 MW Jiyeh power plants located near Beirut, Lebanon. The scope of supply includes kits for converting the engines from diesel to gas-fired operation in the medium term. They are expected to be converted to run on liquid and gaseous dual-fuel capacity once the region's gas infrastructure is up and running.

News in Brief

Low-carbon batteries

Jan 26 – Geyser Batteries, a Finnish cleantech startup, has calculated the emissions of its electrochemical recuperators (ECR) to be significantly below industry averages. The ECR is an energy storage used for heavy-duty applications in the power grid and industrial machinery. The calculation, validated by the research institution VTT, shows the carbon footprint of ECR production is up to 74% lower when compared to its closest competitor, supercapacitors based on li-ion batteries.

Green hydrogen production surges

Jan 25 – Global green hydrogen production is seen skyrocket at a rate of 57% between 2019 and 2020, according to Frost & Sullivan, rising from 40,000 tons to 5.7 million tons. The hydrogen surge comes as industry and power generators increase investment  in alternative low carbon technologies and more countries set binding targets to reach carbon neutrality by 2050.

Italy’s power exports Montenegro surge

Jan 22 – Italian electric power exports increased by 28% in 2020, largely driven by flows to Montenegro which surged 26% to 8.6 TWh. In contrast, domestic power demand fell 6% last year to 271.6 TWh with electricity sales from conventional plants down nearly 9% to 140.5 TWh, figures by the Italian energy exchange GME show.

US considers new nuclear

Jan 21 – The new US President Joe Biden has said his country could construct new nuclear power plants and reiterated plans to “swiftly rejoin” the Paris Climate Agreement swiftly. Germany’s environment minister, Svenja Schulze, called it illusionary to believe that newer, smaller reactors will be a technology of the future.

Mitsubishi produces methanol in Trinidad

Jan 20 – Mitsubishi Gas Chemical Company has launched commercial operations of a methanol and dimethyl ether plant in Trinidad and Tobago. The plant has an annual production capacity of one million tons of methanol and 20,000 tons of dimethyl ether, which can be used as an alternative fuel for cars and power generation.

First 8-cylinder B36:45 engine delivered

Jan 19 – Rolls-Royce has delivered the first 8-cylinder variant of its Bergen B36:45 gas engine to a tomato producer in Belgium. The medium speed genset is planned for delivery this spring and will drive an onsite power plant that generates 4700 kW electricity and 5520 kW heat. The new engine offers a 20% increase in power per cylinder and will replace an existing Bergen 12-cylinder B35:40 genset.

Moody’s upgrades Enel to Baa1

Jan 18 – Moody’s Investors Service has upgraded Enel’s long-term rating to Baa1, with a stable outlook. The upgrade reflects Enel’s progress in reducing its risk profile, analysts said, pointing at the Italian utilities ongoing investment in networks and renewables, growing geographical diversification and focus on centralised financing.

GE sues Siemens Energy

Jan 15 – General Electric has sued its German rival Siemens Energy over the alleged use of stolen trade secrets to win gas turbine contracts worth several billion dollars. GE told the US district court in Virginia that Siemens received the secret information from a Dominion Energy employee.

Orbital Energy launches Eclipse

Jan 14 – Nasdaq-listed Orbital Energy Group has launched a new subsidiary, Eclipse Foundation, a drilled shaft construction company. The new company specialises in providing services for power transmission and substations, communication tower and a disaster restoration through emergency power.

S’Korean coal and LNG imports slide

Jan 13 – South Korea’s imports of thermal coal and LNG have fallen 12% and 11%, respectively, as the government cracks down on fossil fuel usage to curb air pollution. Customs data shows that coal imports amounted to 10.2 million tons in December, down 1.4 million tons from the same month last year but up from November’s imports of 9.5 million tons.

SMC builds 1.7 GW CCGT in Batangas

Jan 13 – Excellent Energy Resources, part of SMC Global Power Holdings, is building a 1,700 MW combined cycle gas power plant in Barangay Dela Paz and Ilijan in Batangas City with investments of about 67.863 billion Philippine Pesos ($1.41bn). The project is estimated to be completed in 36 to 40 months.

UK’s National Grid issues supply warning

Jan 12 – Natural gas prices in the UK surged as National Grid issued warnings on supply deficit as LNG cargoes are being diverted to North Asia. Prices at the British NBP gas trading hub soared to the equivalent of $8.95 per MMBtu, while the JKM price for North Asian spot LNG cargoes for February 2021 was last at $19.700 per MMBt.

Fortistar invests in hydrogen

Jan 11 – Fortistar, a privately-held fund, has joined an equity investment of up to $157 million in hydrogen producer BayoTech. Cottonwood Technology Funds and the New Mexico State Investment Council also participated in the latest financing round. BayoTech’s systems produce local hydrogen close to the application, serving end users in the industrial gas and petrochemical segment as well as those who use of hydrogen to power fuel cells.

Ashtead appoints new CFO

Jan 5 - Ashtead Technology has appointed a chief financial officer (CFO) and five managers for newly created roles across its international team. The appointments are meant to cement the company’s position in the offshore energy market, including offshore wind and decommissioning of thermal power plants

NFE secures LNG for Puerto Rico, Mexico and Nicaragua

Dec 23 – New Fortress Energy (NFE) has agreed to purchase Henry-Hub-indexed LNG for its integrated gas and power businesses in Puerto Rico, Mexico and Nicaragua. The New York-based project developer said it now has covered 80% of its expected needs throughout Latin America, thus reducing its need for spot purchases and its exposure to changes in the market price for LNG.

China and Korea mandate coal-to-gas switch

Dec 22 – The Chinese government has launched a coal-to-gas boiler switching programme, targeting 7.1 million homes, which makes gas demand more weather-sensitive this winter. Similarly, South Korea mandated the closure of 15 coal-fired plants since the start of December in an effort to reduce air pollution. Analysts expect this will accelerate the drawdown of LNG terminal inventories going into Q1-2021.

GE repowers oil field in Brazil

Dec 21 – GE Power Conversion has been awarded a contract by Sulzer Pumps UK to supply motors for four water injection pumps of a Floating Production Storage and Offloading (FPSO) vessel. The 8,000 kW, two pole motors will run at 3,600 rpm with a limitation of the starting current at 300%, enabling the oil and gas field operator to optimise the generator which supplies electricity on the FPSO.

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